Are you tired of renting, but you are still not quite in a position to buy a home? Do you live in the Emerald City, or are you about to move here? If your answer to either of these questions is yes, maybe it’s time for you to consider rent-to-own in Seattle!
After you choose a neighborhood in Seattle that fits your and your family’s needs, it will be very easy to find a home you’ll love. Rent-to-own is a great way to get the property you’ve been dreaming of. In this article, we’ll explain why this is a great choice, especially if you are a first-time homebuyer.
Should you move to Seattle?
We definitely vote yes! With a great job market, tax benefits, and stunning greenery, the largest city in Washington sure has plenty to offer. Plus, it’s known for its fantastic coffee!
As one of the friendliest cities in America, it is a great place to come by yourself and start a new adventure. If you have a family, your children will have excellent educational opportunities. So regardless if you are single or have a family, Seattle can be the perfect place to live.
One of the best parts is that relocating to Seattle is very easy, even if you are coming from the opposite side of Washington. There are plenty of reliable long-distance moving companies you can hire to help you, not just with the move itself but also with planning your relocation to Seattle. This way, you will be free to explore this incredible city as soon as possible.
What does rent-to-own mean?
Rent-to-own or lease-to-own is in a way very similar to leasing a car. The landlord is the seller at the same time. This means that they’ve given a right to their tenant to buy the property at some point. Usually, the property is bought after one to three years of renting, and the price is determined on the day both parties signed the lease.
When renting a place this way, the rent is usually higher (around 20%). This means that, if a particular home is leased for $1000 per month but you decide to rent-to-own, you will approximately pay $1200. However, you are not simply paying a higher price in vain. On the contrary, this amount accumulates and is credited to the tenant for the future down payment.
Keep in mind that you also need to pay a deposit to the seller as a way to secure the deal. If you decide not to go through with the purchase, the difference between the rental price (the 20% we’ve talked about above) will not be returned to you.
What does a rent-to-own agreement contain?
Getting familiar with the specifics of this type of agreement is just one of the things you need to know before you decide to rent-to-own in Seattle. Although they are very similar, a rent-to-own contract is different from the standard tenancy agreement.
A rent-to-own agreement contains:
- Term – it is stated explicitly for how many months the contract will be in force. Basically, it says how much time you have to finish the purchase.
- Price – the purchase price says how much you’ll pay for the home in the future.
- Rent credit – it is an above-market rent that you pay to the seller. This becomes a part of your down payment.
Besides this, a rent-to-own agreement also contains rental provisions which can be found in any tenancy agreement:
- Monthly rental due date
- Penalties for late payments
- Rules regarding pets, noise, parking, etc.
- Different responsibilities regarding home maintenance
Why choose rent-to-own in Seattle?
There are many reasons why you should decide to buy via rent-to-own in Seattle instead of just renting. As a first-time homebuyer, it’s much easier for you to qualify for rent-to-own than to buy a home the traditional way. Here we’ll represent just some of the many advantages of the rent-to-own option.
Home value can increase during the lease period
One of the most significant advantages is that you can buy a home in the future but at today’s price. So, if the market escalates and the houses in your area start to get more expensive, you don’t have to worry. Your home price is locked in, so you can basically end up buying a more expensive home at a much lower price. And not only that, but if you decide to sell later on, you will make a sizable profit. How’s that for a first home purchase?
You are not wasting your money
When you are renting a property, you are paying a monthly rent that is going to your landlord’s pocket. At the end of your tenancy agreement, you will have nothing to show for it. It almost feels as if you’re throwing your money away.
If you choose rent-to-own, you might be paying a higher rent. However, those extra funds you’ve accumulated will count towards your future down payment. This way, you will not be simply helping your landlord pay their mortgage – the rent credits will enable you to save for a down payment.
You don’t have to wait!
Paying rent and trying to save up for a home at the same time can be frustrating, not to mention difficult. You would have to give up on a lot of things. When you rent-to-own, there is no need for you to wait – while paying rent, you are building equity and getting closer to buying your dream home.
Able to purchase even if you don’t qualify for a traditional mortgage
If you have bad credit, odds are you won’t be able to qualify for a mortgage and buy a home. However, when it comes to rent-to-own agreements, they usually don’t require perfect credit.
When choosing this option, you are buying yourself time to fix up your credit score. This way, you’ll be able to get a mortgage when you are ready to purchase your home. Given that you’re a first-time buyer, it sounds pretty fantastic, right?
Avoid a move
You can avoid the stress of a move by renting and then owning the place. When you are just renting a home after your lease expires, you will need to find another home. Imagine how much time, money, and energy you can save. Plus, you’ll be able to stay in the same neighborhood, close to the amenities and the people you’re used to, and not have to worry if you’ll be able to find a nice property nearby.
Decide not to buy
One of the most significant advantages of rent-to-own in Seattle is that you can “test” the house while renting and decide if you need to back out of a purchase. When you are renting instead of buying, you’ll experience life at the property. Also, you’ll have the opportunity to find any issues that the seller didn’t advise you about up front.If the home simply doesn’t work for you, you can decide not to buy it. When you’re a first-time homebuyer, and you decide to purchase in the traditional way, you can get overwhelmed and make a rash decision you might regret later. If you choose to rent-to-own in Seattle, you’ll have time to change your mind and really be sure that you made the right call.